Received: 01 Jan 1970
Accepted: 01 Jan 1970
FINANCIAL RESTRUCTURING OR REHABILITATION OF COMPANIES
Vukša Slavko (Алфа БК Универзитет, Београд),
A company is established to perform economic activities with the intent to generate revenue after the execution of transactions. However, in a situation where a company does not operate effectively and if it incurs losses or costs that exceed the income, this situation indicates the company has entered into financial and business difficulties. In addition to restructuring in the process of privatization and reorganization in bankruptcy proceedings, the agreement on financial restructuring is the third way in which the recovery or rehabilitation of a company can be carried out. This remediation method was introduced into our legal system in 2011, by adopting the Law on Contractual Financial Restructuring of Companies. The agreed financial restructuring includes the legal rules on the regulation of unsolved debttrust relationships. Some of these rules belong to a group of classic rules on company restructuring. In addition to these rules, some completely new rules prescribe the possibility of establishing a rehabilitation authority, the responsibilities of institutional mediators and the status of creditors to accept a restructuring agreement. The subject of this paper is concentrated precisely on the analysis of the stated rules in order to provide a clearer picture of the adopted legal solutions.
Keywords: Financial restructuring, credit institutions, investments, joint stock companies